This is a trend following analysis using a breakout entry formation that generally has the greatest results. This analysis is good for 4H trading, but can also be used on almost all time frames and on all pairs. Basically, this analysis is based on breakout and certain forms of reversals. The analysis seeks to highlight potential breakout setups that can result in higher reward. To ensure consistent successful trades, the trader should exercise some degree of patience and wait for the perfect set up to execute trades. There’re are several types of breakouts, I only focus on two types of breakouts, trend line breakout and double top/triple top/ bottom breakout. Even with the two, I only trade double top/ triple bottom breakout most of the times and trend line breakout at some other times. Double top/Triple top/ bottom breakout is more dependable and reliable than the other. Note, trend line breakout includes also breaks that occur out of various shapes such as wedges, channels, triangles, and all the other shapes part from rectangles. Below are the simple sketches of some of the breakout setups I’ll be focusing on.
Technical observation EUR retraced to the resistance zone it established at 1.1758-1.1752 but could not break above it; price bounced below the zone then went down with a big red candle. Right now it is trading with an increasing bullish bias and expect a continuation of this upwards movement to
Technical observation On the 4 hour chart above, price is trading with an increasing bullish bias between a supportive level 1.3570 and a resistance level 1.3681, this upwards movement is a retracement to the key level 1.3681 and I expect a rejection of it at the same line for a rally to the lower
Technical observation USD rose and broke above zone 109.74-109.71 with a big green candle, it then retraced to the broken zone but was rejected within it and as long as price is above the zone 109.74-109.71, I can only recommend bullish positions for this pair. Right now USD is trading with and in